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The following were selected from among the transactions completed by Babcock Company during November of the current year: Nov. 3 Purchased merchandise on account from
The following were selected from among the transactions completed by Babcock Company during November of the current year:
Nov. | 3 | Purchased merchandise on account from Moonlight Co., list price $93,000, trade discount 25%, terms FOB destination, 2/10, n/30. |
4 | Sold merchandise for cash, $34,100. The cost of the merchandise sold was $22,080. | |
5 | Purchased merchandise on account from Papoose Creek Co., $43,650, terms FOB shipping point, 2/10, n/30, with prepaid freight of $750 added to the invoice. | |
6 | Returned $15,000 ($20,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co. | |
8 | Sold merchandise on account to Quinn Co., $15,270 with terms n/15. The cost of the merchandise sold was $8,940. | |
13 | Paid Moonlight Co. on account for purchase of November 3, less return of November 6. | |
14 | Sold merchandise on VISA, $229,890. The cost of the merchandise sold was $153,500. | |
15 | Paid Papoose Creek Co. on account for purchase of November 5. | |
23 | Received cash on account from sale of November 8 to Quinn Co. | |
24 | Sold merchandise on account to Rabel Co., $51,300, terms 1/10, n/30. The cost of the merchandise sold was $33,280. | |
28 | Paid VISA service fee of $3,410. | |
30 | Paid Quinn Co. a cash refund of $5,610 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,180. |
Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
Must Use
CHART OF ACCOUNTS Babcock Company General Ledger
ASSETS | |
110 | Cash |
121 | Accounts Receivable-Quinn Co. |
122 | Accounts Receivable-Rabel Co. |
125 | Notes Receivable |
130 | Merchandise Inventory |
131 | Estimated Returns Inventory |
140 | Office Supplies |
141 | Store Supplies |
142 | Prepaid Insurance |
180 | Land |
192 | Store Equipment |
193 | Accumulated Depreciation-Store Equipment |
194 | Office Equipment |
195 | Accumulated Depreciation-Office Equipment |
LIABILITIES | |
211 | Accounts Payable-Moonlight Co. |
212 | Accounts Payable-Papoose Creek Co. |
216 | Salaries Payable |
218 | Sales Tax Payable |
219 | Customers Refunds Payable |
221 | Notes Payable |
EQUITY | |
310 | Owner, Capital |
311 | Owner, Drawing |
312 | Income Summary |
REVENUE | |
410 | Sales |
610 | Interest Revenue |
EXPENSES | |
510 | Cost of Merchandise Sold |
521 | Delivery Expense |
522 | Advertising Expense |
524 | Depreciation Expense-Store Equipment |
525 | Depreciation Expense-Office Equipment |
526 | Salaries Expense |
531 | Rent Expense |
533 | Insurance Expense |
534 | Store Supplies Expense |
535 | Office Supplies Expense |
536 | Credit Card Expense |
539 | Miscellaneous Expense |
710 | Interest Expense |
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